The loans are non-recourse to the developers, so while they might have to turn over the keys to the property at the end of the day, the bank isn’t coming after

The loans are non-recourse to the developers, so while they might have to turn over the keys to the property at the end of the day, the bank isn’t coming after them for their other projects or personal assets. A busted deal isn’t a happy outcome for a real estate developer, at all, and they lose whatever equity they invested on the project, but non-recourse debt protects them on the downside and they make their real money on the successful deals.